With the upcoming US presidential election, how will you strategize? At this critical moment, A-shares surge again. What kind of logic is this?
$SSE Composite Index (000001.SH)$
Don't worry, when market logic confuses you, go back to the relationship between value and price, supply and demand, and market sentiment, then everything becomes clear.
In the past month, A-shares have indeed been stealing the limelight. Starting from the low point of 2600 points at the end of September, it skyrocketed to 3600 points. Then it began to oscillate and adjust. The rapid rise was triggered by a series of government policies stimulating the market, coupled with central liquidity injection. However, the explosive rise is not solely due to policies; the underlying logic is that valuations below 3000 points were cheap enough. With a low valuation as the foundation, the stimulus took effect. The investment targets introduced later can show the current valuation level of A-shares.
However, it is important to note that during sudden spikes, do not blindly chase after them. Previously, Hutu repeatedly reminded to plan ahead, not to wait until everyone thinks the market is good before rushing in. When everyone's emotions are running high, rushing in may lead to high entry points, and crowded places are prone to stampedes. Just like dancing, it is crucial to step to the beat. In the same market, when everyone calms down and there is a pullback, it might actually present an opportunity. Control the rhythm well, while also paying attention to systemic risks and diversifying asset allocation.
For local investors in Singapore, without an A-share account, they can only watch from the sidelines. But in reality, it might not be necessary to have an A-share investment account...

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